We have summarised the tax updates relating to corporate income tax in Denmark in 2023 below:
What are the tax changes for Denmark in 2023?
From January 2023, the maximum deductible salary per person relative to the CIT amounts to 7.7 million DDK (approximately 1 million euros).
An increased corporation tax will apply to financial institutions in relation to CIT from 22% in 2022, to 25.2% in 2023 and 26% starting 2024. This group of companies are composed of banks, insurance companies, and investment management companies. The increase in the percentage of the CIT is linked to a new bill relating to early retirement, which will be covered by this initiative.
Investments below 32 thousand DDK (approximately 4 thousand euros) with a useful life of less than 3 years, will be 100% deductible in the acquisition year.
Due to the increase in relation to the price of energy, all companies related to the extraction of raw materials in Denmark have to make a “temporary solidarity contribution” relative to the 33% (based on a calculation model) on the company´s taxable income.
In March 2023, the parliament of Denmark ratified a new double taxation agreement with France. the agreement clarifies the rights of each country to assess the tax incentives and to prevent tax evasion.
Do you need help in Denmark?
Auxadi can become your ideal partner in Denmark. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll, management and representation services, among others.
Local Knowledge – International Coverage
Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.
All information contained in this publication is up to date on 2023. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.